Tesla’s (NASDAQ:TSLA) Robotaxi reveal party was a carnivalesque affair but ultimately light on details. Wall Street’s response has been largely skeptical, reflected in Tesla’s 15% stock drop in October. Doubts persist over whether the EV giant’s self-driving Cybercab will truly revolutionize the market as promised. The same sentiment extends to the newly unveiled Cybervan and the Optimus robot, which Elon Musk boldly called “the biggest product ever.”
Actually, on that issue, according to a Bloomberg report, the company had humans remotely operating certain functions of the Optimus robot prototypes during the event.
So, unless you’re a diehard TSLA lover, it’s easy to understand why some would be cynical about Musk’s ambitions following the disappointing event.
Even Tesla fan, Canaccord analyst George Gianarikas, couldn’t ignore the shortcomings.
“Let’s be critical for a moment,” said Gianarikas. “We sort of get the snarky reactions. Details were minimal. And, we doubt the timing of it all. All. By a lot. Not only is Robotaxi unlikely by 2026 in our view, but, we are not totally convinced that Tesla’s camera-only, end-to-end neural network approach is the right one — at least not for a long while.”
Gianarikas has long banged the drum for Tesla, so has the analyst now decided that there’s just too much hot air circulating in the EV leader’s HQ? Not at all. Gianarikas’ recommendation is to “stop being so cynical. SpaceX just caught a rocket booster in the arms of its launch tower, have faith!”
The analyst points out that Tesla is in it for the long-term, intent on “creating value” across four major markets: electric vehicles, AI and autonomy, robotics, and energy storage. Each of these sectors has a large TAM (total addressable market) and strong growth potential, where Tesla is expected to be a leading player.
“The party, despite its speciousness, was a modish introduction to the company’s robofuture designed to put the world on alert,” Gianarikas goes on to reassure, “and — yes — help investors understand the company’s long-term potential. Don’t miss the profundity behind the glitz and glamour.”
Accordingly, Gianarikas rates Tesla shares a Buy rating, backed by a $254 price target. The implication for investors? Upside of 15% from current levels. (To watch Gianarikas’s track record, click here)
Turning now to the rest of the Street, where 10 other analysts also have a favorable view of TSLA’s prospects although they are countered by 16 Holds and 8 Sells, making the consensus view a Hold. The average price target currently stands at $207.83, suggesting a ~6% drop in in the cards. (See Tesla stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
